Halifax rate cuts hurt loyal savers

Halifax has been accused of punishing loyal savers with interest-rate cuts while tempting new customers with eye-catching account rates

Although experts predict rates will remain on hold when the Bank of England meets this month, Halifax cut the rate on its Websaver, Monthly Saver, Isa Saver, Saver reward and Instant saver accounts by up to 0.15 percentage points.

The Isa Saver, which paid at least 4.26% in November when the Bank rate was last at 5%, returns just 3.06% on balances up to £2,999, and 3.71% above £27,000. Savers could earn 6.1% by transferring to Icesave, or 6% from Birmingham Midshires, Principality or Alliance & Leicester.